Schedule AAC: Alabama Adoption Tax Credit (2024)
Alabama · Alabama DOR · Used for tax years 2024
Schedule AAC calculates the 2024 Alabama Adoption Tax Credit. It records information about eligible adopted children and adoption agencies, calculates $2,000 per qualifying Alabama-resident adoptee and $1,000 per qualifying nonresident adoptee, and carries the total to Schedule O
Who files this form
Schedule AAC is used to calculate the 2024 Alabama Adoption Tax Credit for adoptive parents who reside in Alabama.
- Part I: For an eligible child who was an Alabama resident and was either a qualified foster child or adopted through a private adoption.
- Part II: For an eligible child adopted through an out-of-state adoption or who was otherwise not an Alabama resident.
Adopting a child of either parent does not qualify for the credit.
What you'll need
Have the following information ready to complete the schedule:
- Name or names as shown on the tax return.
- Primary taxpayer’s and spouse’s Social Security numbers.
- Each eligible child’s name, Social Security number, and effective date of adoption.
- Birth mother’s name.
- Adoption agency’s name and address.
The form does not list supporting documents to attach.
How to file
The schedule can only be submitted or printed in landscape orientation.
- Enter the child and adoption information in Part I or Part II, based on the child’s residency and adoption circumstances.
- In Part III, line 1, multiply the number of qualifying adoptees from Part I by $2,000.
- On line 2, multiply the number of qualifying adoptees from Part II by $1,000.
- Add lines 1 and 2. Enter the total on line 3 and on Schedule OC, Section B, Part M, line M1.
The supplied form text does not provide a mailing address or e-filing instructions.
Common mistakes
- Using portrait orientation: The form says it can only be submitted or printed in landscape orientation.
- Claiming the credit for adopting a child of either parent: The form explicitly says these adoptions do not qualify.
Questions people ask
How much is the credit for each qualifying adoptee?
For 2024, the form calculates $2,000 for each qualifying adoptee in Part I and $1,000 for each qualifying adoptee in Part II.
Can a child who was not an Alabama resident qualify?
Part II covers eligible children adopted through an out-of-state adoption or who were otherwise not Alabama residents. The adoptive parent or parents must reside in Alabama.
Does adopting a child of either parent qualify?
No. Both Part I and Part II state that adopting children of either parent does not qualify for the adoption credit.
Where do I enter the total credit?
Enter the total on Schedule AAC, Part III, line 3, and on Schedule OC, Section B, Part M, line M1.